Federal Judge Dismisses NASCAR’s Claim Against Suing Teams
A federal judge ruled in favor of 23XI Racing and Front Row Motorsports, dismissing NASCAR’s counterclaim in a legal dispute over allegations of anti-competitive practices. The decision was issued by U.S. District Judge Kenneth Bell. The court ruling favors 23XI Racing and Front Row Motorsports, rejecting NASCAR’s claim of alleged illegal collusion by Curtis Polk, co-owner of 23XI, with other teams during negotiations for new agreements. Polk, who is also Michael Jordan’s business manager, participated in the negotiating team that worked with NASCAR for more than two years on the licensing agreement signed by several organizations last year. NASCAR argued that the 2023 boycott of the team owners council meeting negatively affected media rights negotiations and that the union of the 15 organizations for licensing negotiations resulted in a better deal for the teams.The judge also determined that 23XI and FRM did not participate in an “unreasonable restraint of trade,” as NASCAR’s individual meetings with the teams resulted in changes to the licensing agreement. Furthermore, he considered the teams’ collaboration in the negotiations reasonable, given that the licensing agreements would be the same for everyone. Judge Bell noted that NASCAR conducted individual negotiations on a regular basis during the negotiation period, achieving concrete results, including the final 2025 licensing agreement, signed by 13 teams acting individually. Judge Bell must also rule on two other summary judgment motions: one filed by NASCAR and another by 23XI and FRM to designate the market as “premier stock-car racing.” Despite two days of mediation last week, the dispute was not resolved and the trial is scheduled for December 1 in North Carolina. 23XI and FRM are the only two organizations out of 15 that refused to sign license extensions, which are fundamental to NASCAR’s business model. A licensed car guarantees income and access to weekly races, and without them, both teams claim they would likely go bankrupt.Judge Bell considered the boycott a negotiation tactic “that seemed to have little impact,” as NASCAR initiated individual negotiations shortly thereafter.
Judge Kenneth Bell
NASCAR indicated that it is still hoping to reach an agreement. The season concludes with the championship final on Sunday in Phoenix and Hamlin is one of the four drivers eligible for the Cup title.Today’s decision has only reaffirmed my clients’ unwavering pursuit of a fairer and more equitable sport. Their determination remains strong as we continue our efforts to achieve a resolution that benefits everyone: teams, drivers, employees, partners, and fans.
Jeffrey Kessler, attorney for 23XI/FRM
In the event a resolution is not reached, NASCAR intends to appeal the decision at the appropriate time.We respect the Court’s decision, although we respectfully disagree with its legal reasoning. Our priority remains resolving this matter quickly so that all parties can focus on championship weekend and continue to grow the sport.
NASCAR
